Troy realty again in play

Embattled landlord Horowitz takes control of River Street building with intent to sell

By CHRIs churchill Business writer

Published 1:00 am, Friday, July 9, 2010

TROY -- The city's most embattled landlord again controls a hulking brick River Street building once targeted for 36 loft apartments.

But Sandy Horowitz plans to sell 444 River St. -- and two other Troy buildings -- as he attempts to emerge from Chapter 11 bankruptcy protection.

The River Street building, across from a waterfront parking lot, sits at the base of the lively entertainment district that includes Brown's Brewing Co. To developer Keith Holmes, that made the former factory the perfect location for his apartment proposal, which also included plans for new office and retail space.

But Holmes was never able to get bank financing for his plan, and he fell behind on payments to Horowitz, who held the mortgage. Last month, Holmes decided to walk away from the building.

"I gave it back to him," Holmes said. "It became economically unviable."

Horowitz, meanwhile, has notified a California bankruptcy court that he intends to sell the building, along with 17 First St. and 1 Monroe St.

Horowitz owns eight Troy buildings overall, including prominent downtown buildings such as the Cannon Building, the former Henry Hendrick Hotel, and the Keenan Building. It sometimes seems as though downtown's fortunes are tied to his.

Jim Coyne, the former Albany County executive hired by Horowitz to manage the properties, said Thursday he believes his boss has no intention of selling the Cannon, Hendrick Hudson or Keenan buildings.

"Most of the others will probably be made available," Coyne added. "Cash flow is pretty important these days, so I'm sure he's looking at the reality of that."

Horowitz, in the court papers, estimates that 444 River St. will sell for between $500,000 and $700,000.

Horowitz also estimates the sale of 17 First St., an office and retail building, will bring an estimated $350,000, while an industrial structure at 1 Monroe St. will bring $750,000 to $1,000,000.

Horowitz arrived in Troy in 2003, claiming ties to the Hollywood film industry and promising to help put the city on the path to renaissance.

But his reputation soured as he fell behind on bills and taxes, and his ownership tenure in Troy has been marked by vacancies and maintenance issues. The Cannon Building, for example, was shuttered last year for code violations, and upper floors of the apartment and office building are still not approved for occupancy.

Coyne said he expects to have the Cannon reopened within weeks.

A federal judge will review Horowitz's bankruptcy plan later this month. The plan estimates that the Troy property sales will raise enough money for Horowitz to begin repaying his debts.

Holmes conceded lingering hard feelings from his business relationship with Horowitz. But he also said he hopes Horowitz successfully and quickly emerges from bankruptcy protection.